Australians were approved to take $892 million out of their superannuation to pay for dental treatment in 2025/26, but the pace of growth has slowed sharply, new tax office figures show.
Data released by the Australian Taxation Office (ATO) shows the amount approved for dental care rose 9 percent from $817.6 million the year before, well below the 55 percent jump recorded in 2024/25.
The number of people approved barely moved, rising 2 percent to 33,550, after growing by about half the previous year.
Australians can apply to the ATO to withdraw super early on compassionate grounds, which include medical treatment needed to treat a life-threatening illness or to relieve serious pain or mental illness.
Applicants need two medical reports and must have no other way to pay.
Dental care now makes up about 61 percent of the record $1.46 billion approved across the scheme. In 2018/19, when the ATO took over running it, $66.4 million was approved for dental treatment.
Safety Net ‘Not the Dental System’
The Australian Dental Association said the figures showed too many people could not afford the dental care they need, with public services limited and waiting lists often long.
“More than 39,000 (sic) Australians applying to dip into their retirement savings for dental treatment is a sobering figure,” Association President Dr. Chris Sanzaro said.
“Superannuation is intended to provide financial security in retirement. It was never designed to become a routine way of paying for dental care.”
Sanzaro said the Association had updated its guidelines for dentists and patients, and was concerned about super being promoted for purely cosmetic work.
“Accessing super should be a health decision, not a lifestyle decision,” he said.
The association has called on governments to improve access to publicly funded dental services, particularly for children, seniors, people with disabilities, and those facing financial hardship.
The growing reliance on superannuation for dental treatment comes amid a longstanding debate over whether more dental services should be covered by Medicare.
Australia’s public dental services are largely delivered through state and territory programs, with eligibility restrictions and lengthy waiting lists in some areas. In 2024 the Greens proposed extending Medicare to dental care, which raised concerns about the cost and design of a universal scheme.
Crackdown Having an Effect—ATO
The slowdown comes as the ATO steps up action against health practitioners, including dentists, and third-party businesses that it says are pushing people to use their super for cosmetic dental work.
Since July 1, 2025, the ATO has launched more than 160 reviews and audits over false or misleading statements in applications or medical reports, imposing penalties of more than $1.5 million. Across all categories, the number of approved applications fell 5 percent, although the total value approved rose 2 percent.
“We believe the decline in applications shows our compliance actions are having an impact,” ATO Deputy Commissioner Ben Kelly said.
He said early release “should only be considered as a last resort, where all other options of paying for the eligible expenses have been exhausted.”
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